Swedish retail giant H&M Group has announced a new partnership and investment with zero-carbon heat and power provider Rondo Energy. Rondo claims its heat batteries can replace most fossil fuels in textile production, potentially reducing the carbon footprint of clothing by nearly two-thirds.

H&M will collaborate with Rondo to develop heat storage technologies in its supply chain. The partnership aims to create “clean, affordable heat” to power textile factories worldwide. By working with H&M, Rondo aims to replace fossil fuels with clean heat and power using its battery technology. The investment from H&M will also help Rondo expand its international operations and develop new storage projects.

John O’Donnell, founder and chief innovation officer at Rondo Energy, said, “Today, coal provides most of the heat and carbon pollution in fabric production because it has been cheap and easy to burn. But the world is changing. Wind and solar power are becoming cheaper than fossil fuels. At Rondo, we’ve created a practical tool to harness these new energy sources.”

H&M Group said, “This investment will support our ongoing efforts to decarbonize our supply chain. The next step is to explore how Rondo’s technology can be used in our supplier factories.”

Laura Coppen, H&M Group Venture’s investment manager, added, “Rondo’s thermal battery energy storage has the potential to help factories electrify, which is crucial for achieving our climate goals. We look forward to working closely with Rondo and the broader ecosystem to scale decarbonization technology.”